The Pakistani rupee showed a slight appreciation against the US dollar during intra-day trading on Thursday, gaining 0.04% in the inter-bank market. By 10 a.m., the rupee was trading at 281.35, an increase of Re0.12 from the previous day’s closing rate of 281.47.
The minor uptick in the rupee’s value comes amid a relatively stable global currency environment. Internationally, the US dollar held firm against the euro early Thursday, maintaining gains from the previous session—its strongest daily rise in two weeks.
The dollar’s strength followed remarks by the US Federal Reserve, which highlighted risks to the American economy stemming from elevated inflation and rising unemployment. On Wednesday, the Federal Open Market Committee (FOMC) left interest rates unchanged, as widely expected. However, Fed Chair Jerome Powell noted lingering uncertainty over whether the economy will maintain its growth trajectory or falter under trade pressures and inflationary concerns.
Investor sentiment was also influenced by upcoming US-China trade talks scheduled for Saturday in Switzerland. Hopes of easing tensions between the two economic giants provided additional support for the greenback.
The euro was trading at $1.1313 in Asian markets early Thursday, little changed after the dollar surged 0.56% on Wednesday, snapping a three-day losing streak. The US dollar index, which tracks the greenback’s performance against six major currencies, remained steady at 99.842 after a 0.26% rise in the previous session.
Meanwhile, oil prices, a key factor influencing currency markets, were steady after sharp declines a day earlier. Brent crude held firm at $61.12 per barrel, while West Texas Intermediate (WTI) edged up by 6 cents to $58.12 per barrel. Both benchmarks had lost 1.7% on Wednesday amid investor skepticism over whether the upcoming trade negotiations would yield meaningful progress.
Market analysts continue to monitor both domestic and global developments, including monetary policy signals from the US Federal Reserve and geopolitical trends, for further cues on the rupee’s trajectory. Markets currently expect up to three interest rate cuts by the Fed this year, possibly beginning in July or September.